Drax and Brookfield plan £20 billion AI data centre in North Yorkshire

Drax Group, Brookfield and Radiant announced a partnership on 3 November to develop an AI data centre at Drax Power Station in North Yorkshire, where Brookfield estimates investment could exceed £20 billion, including £2.5 billion for the first phase. The companies plan to build and operate data centre capacity on the power station estate, starting with a phase targeting up to 100 megawatts from the first quarter of 2028.

Brookfield targets £2.5 billion first phase

Drax signed an agreement with Brookfield and Radiant to develop the project jointly, CNBC reported. Brookfield is an asset manager, while Radiant is its UK-headquartered AI infrastructure platform. Drax shares rose 8.2% in early morning trading on 3 November. Brookfield estimates the full development, including semiconductors, could cost more than £20 billion ($26.8 billion).

The Brookfield-Qai AI infrastructure joint venture will provide backing for the development, Drax said in its announcement. Brookfield’s estimated £2.5 billion for the first phase is part of the potential investment in the full project. That phase is intended to deliver up to 100 megawatts of capacity, with operations targeted from the first quarter of 2028.

Drax said the first phase depends on planning progressing in time, regulatory and network approvals from the government and system operator, and a suitable tenant. The partners’ later capacity targets depend on developing the site in further phases. Brookfield estimates that investment across the development could exceed £20 billion, rather than describing that amount as spending already committed.

Drax site has 4 gigawatts of grid access

The power station estate covers 1,000 acres and has 4 gigawatts of grid access, according to Drax. It also has 2.6 gigawatts of active dispatchable generation capacity and cooling systems. Drax Power Station has operated for more than 50 years. The companies intend to use its land and power infrastructure for data centres while developing capacity in stages.

For the second phase, Drax describes an ambition to ramp up to 500 megawatts of capacity between 2028 and 2031. It also envisages additional capacity after 2031. CNBC reported that the project targets more than 1 gigawatt of capacity at the site. The first-phase target is up to 100 megawatts, rather than the full capacity sought for the development.

The second phase could use electricity from Drax Power Station under a long-term power purchase agreement, Proactive reported on Yahoo Finance. Radiant is to lead design, customer engagement and commercialisation, while Drax is to oversee land, power integration and planning. Those roles put Radiant in charge of finding demand for the planned capacity and Drax in charge of preparing the site.

Drax prepares first-phase planning application

Drax said the partners welcomed the UK government’s new Data Centre Covenant, which offers a route to faster planning and power access for strategically important data centres. The companies said their initial assessment was that the North Yorkshire project aligned with the covenant’s criteria. They also expect to establish a voluntary community benefits fund in consultation with people living around the power station.

Drax chief executive Will Gardiner said the development could help secure the site’s long-term future and protect hundreds of jobs. Brookfield head of AI infrastructure Sikander Rashid said the asset manager would bring capital and operating capabilities, with Radiant delivering the compute infrastructure. The first phase remains subject to the approvals and tenant requirement set out by Drax.

Drax, Brookfield and Radiant expect to begin public consultation on the first phase in November 2026, Proactive reported.